Friday, December 30, 2016

Preet Bharara, the United States Attorney for the Southern District of New York, announced that MARTIN MITCHELL, a/k/a “Tyliek,” pled guilty today to involvement in a racketeering conspiracy in connection with his membership in the “Big Money Bosses” (“BMB”), a violent street gang that operated primarily on White Plains Road from 215th Street to 233rd Street in the Bronx. As part of his guilty plea, MITCHELL admitted that he committed the murder of Keshon Potterfield, on or about June 22, 2014, in the vicinity of East 232nd Street in the Bronx. MITCHELL’s guilty plea was presided over by Magistrate Judge Barbara Moses.

U.S. Attorney Preet Bharara said: “Martin Mitchell, as a member of the violent Bronx street gang Big Money Bosses, admitted to shooting and killing a 17-year-old boy at a birthday party. This type of senseless gang violence threatens the safety and security of all New Yorkers, and we will continue to work with our law enforcement partners to confront it aggressively.”

According to the Indictment and other documents filed in the case, as well as statements made during the plea proceedings:

BMB is a subset of the “Young Bosses,” or “YBz” street gang, which operates throughout New York City. Between 2007 and 2016, members and associates of BMB committed numerous acts of violence against rival gang members in the Bronx – including murders, attempted murders, and armed robberies – and sold crack cocaine and marijuana.

MITCHELL was a member of BMB. On June 22, 2014, MITCHELL and other members of BMB attended a birthday party in the backyard of a residence in the vicinity of 232nd Street in the Bronx. Potterfield was one of the guests at the party and was shot by MITCHELL in connection with BMB’s rivalry with another street gang. Potterfield was 17 years old.

MITCHELL was arrested in this case as a result of a multi-year investigation by the New York City Police Department’s Bronx Gang Squad (the “Bronx Gang Squad”), U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Violent Gang Unit (“HSI”), the New York Field Division of the Drug Enforcement Administration (“DEA”), and the Joint Firearms Task Force of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) into gang violence in the Northern Bronx. The Indictment, which was unsealed on April 27, 2016, charged 63 members and associates of BMB with racketeering conspiracy, narcotics conspiracy, narcotics distribution, and firearms charges. To date, 30 of these defendants have pled guilty.

MITCHELL, 22, of the Bronx, New York, was arrested on April 27, 2016, in the Bronx, New York, and has been in federal custody since. MITCHELL pled guilty today to one count of racketeering conspiracy, which carries a maximum sentence of life in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as the defendant’s sentence will be determined by the judge. MITCHELL is scheduled to be sentenced by United States District Judge Alison J. Nathan on April 6, 2017, at 3:30 p.m.

Preet Bharara, the United States Attorney for the Southern District of New York, James J. Hunt, Special Agent in Charge of the U.S. Drug Enforcement Administration’s New York Division (“DEA”), George P. Beach II, Superintendent of the New York State Police (“NYSP”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced the arrest of EDWIN CABRAL MORA, a/k/a “Sosa.” CABRAL MORA was arrested yesterday in Gwinnett County, Georgia, and was presented today before a U.S. Magistrate Judge in the Northern District of Georgia and detained on consent.

CABRAL MORA is charged in four counts with conspiring to possess and distribute one kilogram and more of heroin, kidnapping, conspiracy to commit kidnapping, and brandishing a firearm in connection with these offenses. In relation to the kidnapping counts, CABRAL MORA is charged with luring an individual (“Victim-1”) from New York to Georgia, where Victim-1 was transported by car to an apartment in which CABRAL MORA and others blindfolded, bound, beat, and tortured Victim-1 by burning Victim-1’s skin.

Manhattan U.S. Attorney Preet Bharara said: “As alleged, Edwin Cabral Mora not only trafficked in large quantities of heroin, but turned to violence, including participating in a vicious kidnapping. In April of this year, Mora allegedly lured a victim from the Bronx to Georgia, ultimately blindfolding, beating, and torturing the victim. Thanks to the remarkable efforts of the DEA, this allegedly dangerous man is now off the streets and will face criminal charges in New York federal court.”

DEA Special Agent in Charge James J. Hunt said: “DEA’s REDRUM Group specializes in tracking down drug traffickers that cross the line into kidnapping, torture and at times, murder. This investigation took the team on the road to Atlanta to arrest Edwin Cabral Mora for his alleged crimes.”

State Police Superintendent George P. Beach II said: “Thanks to the hard work and partnership of law enforcement at the federal, state and local level, we are taking out a violent drug operation. This arrest should send the message that we will continue to aggressively pursue criminals who profit from illegal drugs at the expense of the safety and security of our neighborhoods.”

NYPD Commissioner James P. O’Neill said: “The defendant in this case is an alleged drug trafficker who blindfolded, burned, beat and finally tortured a kidnapping victim in a particularly heinous crime. I am thankful to the NYPD detectives, DEA agents, and others whose work resulted in these charges in the Southern District.”

CABRAL MORA conspired with others to distribute substantial quantities of heroin from at least January 2016 through May 2016, in the Southern District of New York and elsewhere.

Kidnapping and Kidnapping Conspiracy

CABRAL MORA conspired with others to kidnap Victim-1, and did kidnap Victim-1 in April 2016. CABRAL MORA called Victim-1 by phone, when Victim-1 was in the Bronx, New York, to lure Victim-1 to Georgia. Once in Georgia, Victim-1 was transported by car to an apartment in which CABRAL MORA and others blindfolded, bound, beat, and tortured Victim-1 by burning Victim-1’s skin.

CABRAL MORA, 38, of Gwinnett County, Georgia, is charged with conspiring to possess and distribute one kilogram and more of heroin, which carries a maximum sentence of life in prison, kidnapping, which carries a maximum sentence of life in prison, conspiracy to commit kidnapping, which carries a maximum sentence of life in prison, and brandishing a firearm in connection with the foregoing offenses, which carries a maximum sentence of life in prison.

The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the Court.

Mr. Bharara praised the outstanding investigative work of the DEA, and also thanked the Georgia State Police, the Georgia Bureau of Investigation, and Atlanta HIDTA Groups 1 and 2 for their assistance.

The prosecution is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Sagar K. Ravi and Amanda L. Houle are in charge of the prosecution.

The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.

Bronx District Attorney Darcel D. Clark today announced that a Manhattan man has
been charged with Attempted Murder and other crimes for slashing the throat of a fellow
Rikers Island inmate, causing a life-threatening injury.

District Attorney Clark said “The defendant allegedly slashed the inmate’s throat,
inflicting a wound that nearly caused the victim’s death. We will prosecute such vicious
attacks to the fullest extent to eradicate inmate-on-inmate violence, and all violence, in Rikers
Island jails.”

District Attorney Clark said that the defendant, Shawn Young, 32, of 2363 Seventh
Ave., Manhattan, has been charged with second-degree Attempted Murder, first- and third degree
Assault, three counts of second-degree Assault, first- and second-degree Promoting
Prison Contraband and fourth-degree Criminal Possession of a Weapon. He was arraigned
today before Deputy Administrative Bronx Supreme Court Justice Eugene Oliver, who set bail
at $50,000. Young is due back in court on March 27, 2017 and faces up 25 years in prison if
convicted of the top charge.

According to the investigation, on September 9, 2016, Young was involved in an
altercation with another inmate in an intake cell at the Anna M. Kross Center, and slashed the
inmate’s throat with a sharp metal object. He required surgery at Bellevue Hospital.

The case is being prosecuted by Assistant District Attorney Ricardo Rodriguez of the
Rikers Island Prosecution Bureau, under the supervision of Sonya Tennell, Supervisor of the
Rikers Island Prosecution Bureau, James Brennan, Deputy Chief of the Rikers Island
Prosecution Bureau, and Deanna G. Logan, Chief of the Rikers Island Prosecution Bureau,
under the overall supervision of Stuart Levy, Deputy Chief of the Investigations Division, and
Jean T. Walsh, Chief of the Investigations Division.

An indictment is an accusatory instrument and not proof of a defendant’s guilt.

On Saturday, January 7, 2017 at 12:00PM, State Senator Rev. Rubén Díaz, together with the New York Hispanic Clergy Organization, Radio Vision Cristiana International, Radio Cantico Nuevo, Assembly Members Marcos Crespo and Luis Sepulveda, NYC Councilmember Rafael Salamanca, and different community organizations, will be celebrating the Visit of the Three Kings to the Bronx.

The Three Kings Day Visit to the Bronx, a traditional Hispanic cultural celebration, will take place in Public School #5 located at 564 Jackson Avenue, on the corner of East 149th Street.

During this annual event, the first 500 children between the ages of 1-9 years old will receive a toy. School-age children will also receive a book bag with school supplies.

“Live music and entertainment will be provided for the children,” stated Senator Díaz.

Public Advocate Letitia James was asked by a reporter from the New York Post if she would be endorsing Mayor Bill de Blasio for re-election today. The answer Public Advocate James who has been a supporter of Mayor de Blasio came as a shock to some when she described the investigation of the mayor 'Very Serious'. James backtracked from the position of support in August, to today's declining to endorse the mayor. Read the entire New York Post article at http://nypost.com/2016/12/30/letitia-james-declines-to-endorse-de-blasio/

Thursday, December 29, 2016

Your participation, support and membership in The Bronx Chamber of Commerce is sincerely appreciated!

Over 100 new companies have joined The Bronx Chamber in the past 12 months.

Over 65 seminars/workshops, Interview and Job Fairs and networking events were sponsored since January 2016.

We will continue to expand our programs, services and networking events in 2017.

The 2017 Bronx Business Directory & Resource Guide will list all members alphabetically and by category for referrals and new business contacts.

The Directory will be distributed to more than 2,000 member businesses, new businesses, and select governmental offices.

Membership in 2017 to the Bronx Chamber will significantly increase with your encouragement of additional companies to join.

The 2017 Bronx Business Directory & Resource Guide will be updated each month with an addendum listing new members that join to benefit from referrals.

Together, we WILL grow the Bronx Chamber of Commerce, enhance its influence and further improve the image of The Bronx.

The Bronx Chamber of Commerce is one of the most influential, professional and successful organizations and voice for businesses in Bronx County. Professionals and companies are drawn to the successful companies and active members affiliated with The Bronx Chamber of Commerce. BCC Membership includes businesses ranging from large corporations, Cultural Institutions, Universities and Colleges, Hospitals and Medical Centers, non-profits, and mid-sized to small companies.

My Best Wishes to you for a Happy, Healthy & Prosperous 2017 New Year!

New York City’s bike share system shatters annual ridership record for third consecutive year, exceeding 2015 record by 4 million trips

Mayor Bill de Blasio today announced that Citi Bike had set another ridership record in 2016, with nearly 14 million trips – shattering the record set in 2015 by more than 4 million. The Citi Bike program, the largest bike-share program in North America, now regularly serves over 60,000 trips per day – on par with Boro Taxis and the Staten Island Ferry. By one estimate, this year’s record number of Citi Bike trips have kept New Yorkers out of carbon-producing vehicles, sparing nearly 5,000 tons of CO² out of New York City’s air.

“In 2016, we fulfilled our pledge to grow Citi Bike, a sustainable transit option, to a range of more diverse Manhattan and Brooklyn communities – from upper Manhattan to Red Hook,” said Mayor Bill de Blasio. “New Yorkers in these communities really took to Citi Bike, further cementing its reputation as the nation’s largest popular bike-share program. With more Brooklyn and Queens neighborhoods slated to get bikes in 2017, we can continue to expect great things.”

“The expansion of Citi Bike in 2016 has brought record-breaking ridership and transformed neighborhoods,” said Department of Transportation Commissioner Polly Trottenberg. “We look forward to bringing Citi Bike to Astoria, Crown Heights and Prospect Heights in 2017. I thank Mayor Bill de Blasio for his leadership as well as the DOT and Motivate teams for working hard for another fantastic year for Citi Bike.”

“Citi Bike’s latest record shows that bike share is fulfilling its promise as a vital part of New York’s transportation network – increasing access to the city’ transit network and communities underserved by public transit,” said Motivate President and CEO Jay H. Walder. “Citi Bike riders are regularly taking 60,000 rides daily during peak months, and that number keeps growing thanks to innovative partnerships across the city that encourage people of all backgrounds to give blue bikes a try.”

Citi Bike served more than 60,000 trips on 23 different days this year; on October 19, riders completed nearly 70,000 trips – a one-day system record. Operated by Motivate, a national leader in bike share, Citi Bike continues to attract the highest ridership volume of any bike share system in North America. This year’s record represents a 40 percent increase over the previous year, an indication that Citi Bike’s popularity continues to surge all across the city.

The Citi Bike program also added 139 stations and 2,000 bikes to its fleet in 2016 – expanding the network from Harlem to Red Hook in the second phase of an expansion plan that will double the size of the bike share network from 6,000 to 12,000 bikes by 2017. Citi Bike will continue to expand to Astoria, Prospect Heights and Crown Heights in the coming year.

”We are proud of our role in a public-private partnership that has created such a useful and enjoyable transportation solution for New York City,” said Citi Head of Public Affairs Edward Skyler. “Most importantly, we appreciate the Citi Bike riders who have continued to make this program such a success as it gets bigger and better.”

Motivate ensures that Citi Bike remains affordable for lower-income New Yorkers by offering reduced-cost memberships for NYCHA residents, IDNYC holders and members of select Community Development Credit Unions.

Motivate, the Department of Transportation and the Department of Health and Mental Hygiene continue to partner with community organizations, such as the historic Bedford Stuyvesant Restoration Corporation, to help increase and diversify participation in bike share. Membership is up over 50 percent in Bed Stuy since the partnership began. Motivate plans to launch similar partnerships in communities including East Harlem and Two Bridges in 2017.

About Citi Bike

The Citi Bike program is New York’s bike share system. It will have 12,000 bikes at over 700 stations by the end of 2017. Stations are currently located in Manhattan as far north as 110th Street and in the Brooklyn neighborhoods of Downtown Brooklyn, DUMBO, Brooklyn Heights, Fort Greene, Clinton Hill, Bedford-Stuyvesant, Williamsburg and Greenpoint and in Long Island City, Queens. With stations located every few blocks, the program has expanded this year into Harlem, Park Slope, Boerum Hill, Cobble Hill, Carroll Gardens, Gowanus and Red Hook. Annual members receive an electronic key to undock a bike from any station, allowing unlimited trips up to 45 minutes without incurring any additional costs. Twenty-four-hour passes are available for purchase at any Citi Bike station or through the Citi Bike app and provide unlimited 30-minute trips. Reduced cost memberships are available for NYCHA residents and members of select credit unions throughout the city, and for IDNYC holders in their first year of membership.

EDITOR'S NOTE:

It should be noted that Citi Head of Public Affairs Edward Skyler is a former Deputy Mayor under Mayor Michael Bloomberg in whose administration Citi Bike began.

Independent Democratic Conference Releases Report on Economic Impact of Raising the Age of Criminal Responsibility in New York

Senators Jeff Klein, Diane Savino, Jesse Hamilton, Tony Avella, David Carlucci, Senator-elect Marisol Alcantara, advocates, and teen offenders, released a new report on the economic impact of New York’s age of criminal responsibility.

“The impact that the current age of criminal responsibility has on 16- and 17-year-olds affects them for the rest of their lives. Whether it’s increasing the chance to advance academically or secure employment, it is clear that raising the age of responsibility will have a great societal benefit. The report issued by the Independent Democratic Conference shows that in addition to this societal benefit the state will see a fiscal benefit as well. This legislative session we will work with advocates and stakeholders to find a legislative solution to this issue,” said Senator Klein.

“Rectifying the way we deal with crimes committed by 16- and 17-year olds in New York is an important step forward in improving our criminal justice system. We have seen the unfortunate consequences of housing these teens with adult inmates and the effects it has on their future. By raising the age of criminal responsibility we can give these youths a chance to become productive and contributing members of society rather than just giving up on them,” said Senator Diane Savino.

“For far too long New York has been one of only two states where the age of criminal responsibility is 16-years-old. I have seen first hand in my community the effects that this has had on teens now and for their futures. I am confident that we will be able to implement these reforms and I look forward to working with the IDC to accomplish this goal,” said Senator Hamilton.

“New York is one of only two states in the country that treats 16- and 17-year-olds the same as fully developed adults in the criminal justice system. Unfortunately, this can have debilitating consequences for our state’s youth as they make non-violent mistakes that the juvenile system can easily address but isn’t because of the state’s archaic law. It is surprising that a state as progressive as ours, that is usually at the forefront of key social issues, has yet to understand this harsh reality. It is time for the Governor and State Legislature to address this and do right by our youth in raising the age,” said Senator Avella.

“In October of 2014, I hosted a hearing on New York State's Mental Health Supports and Services, titled, "Raising the Age." After hearing testimony from mental health professionals and families affected by mental illness, it was clear we need a new system that supports our youth, especially those with disabilities. New York needs to focus on rehabilitation for our youth, not incarceration. I proudly support raising the age and urge my colleagues in the State Legislature to work together on passing legislation that changes this unjust system of incarceration,” said Senator Carlucci.

“We cannot afford to give up on our teenagers who have made mistakes during their formative years. Holding 16- and 17-year-olds accountable for non-violent offenses the way we do adults makes little sense, and leaves no room for rehabilitation. This ruins their lives, their families lives and impacts our society. We must treat teens like teens and set them on a positive path, leading to them earning higher incomes in the future and becoming productive, contributing members of this state,” said Senator-elect Marisol Alcantara.

The Independent Democratic Conference’s report focused on the short and long term economic effects that raising the age of juvenile jurisdiction from 16 to 18 would have on New York.

A key finding was the savings to the state’s criminal justice system, due to the reduction in detention costs and the expenditure of resources such as transportation between correctional facilities and court hearings as well as probation and parole supervision post-release. The report found that that when fully annualized the state could see savings of up to $117.11 million annually in criminal justice system costs.

The opportunity at a second chance for these 16- and 17-year-olds was also found to have a significant economic impact for New York through additional tax revenue and a reduction in welfare payments, social support programs, and health care costs. As these youths will see a rise in expected lifetime earnings that could keep them off social support programs the state will see an economic benefit. The report found that avoided costs for public welfare, social welfare and health care would save the state $3.46 million annually while additional tax revenue from increased income would total $0.6 million annually.

After a successful 2016 legislative session which saw an increase in minimum wage and the adoption of paid family leave championed by the IDC, accomplishing raise the age has become a priority of the for the 2017 legislative session. The IDC plans to work in a bipartisan fashion to hold public hearings and engage with stakeholders to develop a comprehensive proposal to be released in the coming weeks.

“We can do better than prosecuting and incarcerating 16- and 17-year olds charged with non-violent crimes in the same manner as adults,” said Manhattan District Attorney Cyrus R. Vance, Jr. “Young New Yorkers incarcerated in adult prisons are more likely to suffer abuse and assault, and more likely to reoffend when they get out. In the area of juvenile justice, it is long past time for New York to lead. I thank Senator Klein for his collaboration and commitment to establishing developmentally appropriate options to hold teen offenders accountable.”

State Senator Jeff Klein and Assemblyman Mark Gjonaj hosted the 22nd annual Chanukah celebration at Bronx House on Wednesday evening. On hand was Bronx House Chief Executive Officer Howie Martin, children from the Bronx House programs, and Rabbi Israel Greenberg who helped light the Chanukah Menorah. There was hot chocolate, cookies and Chanukah Gelt given out to everyone in attendance.

In time for more than a million New Year’s Eve revelers, improvements include more permanent plazas with almost two acres of pedestrian space; New benches, kiosks and sidewalks are complemented by new southbound bike lane

Pedestrian flow zones and designated activity areas created during 2016 have proven a success in maintaining safe pedestrian flow at the “Crossroads of the World”

Mayor Bill de Blasio’s Administration today announced that the reconstruction of Times Square had been completed in time for its world-famous New Year’s Eve festivities. NYC Department of Transportation (DOT) Commissioner Polly Trottenberg, NYC Department of Design and Construction (DDC) Commissioner Feniosky Peña-Mora and NYPD Captain Robert O’Hare were joined at the dedication in the heart of Times Square by Times Square Alliance President Tim Tompkins, former DOT Commissioner Janette Sadik-Khan and elected officials, including Manhattan Borough President Gale Brewer.

“All the world knows that New Year’s Eve is an incomparable time to be in New York City -- and there will be no more iconic place to ring in 2017 than Times Square,” said Mayor Bill de Blasio. “With the changes unveiled today, Times Square is now a safer and more welcoming place for the millions of residents, commuters and tourists who visit and pass through it every day. I am so proud that our agencies could come together and finish their incredible work before the new year, ending the disruption that invariably comes with big and complex construction projects.”

“Being able to carve out two acres of new space for pedestrians in one of the world’s most popular plazas is a remarkable gift to the tens of millions of people who visit the ‘Crossroads of the World’ each year,” said DDC Commissioner Feniosky Peña-Mora. “Times Square is now equipped with more resilient sewer systems, wider sidewalks, ample seating, and an emphasis on pedestrian safety that will serve generations to come.”

“In the almost eight years since Broadway in Times Square was first closed to vehicular traffic, it has never looked better,” said DOT Commissioner Polly Trottenberg. “These amazing changes, coupled with the sensible policies for pedestrian movement and solicitation that we instated this year, have made a magical public space even more wonderful and inviting. We are also grateful to be joined today by so many of our partners whose collective vision was so instrumental in getting us to where we are today.”

In February 2009, DOT announced that vehicular traffic would be replaced by pedestrian plazas along Broadway in Times Square between West 42nd and West 47th Streets. The $55 million project to more permanently convert those plazas to pedestrian use began in 2013, managed by the Department of Design and Construction for the Department of Transportation. The five reconstructed pedestrian plazas comprise 85,000-square-feet – or almost two full acres – in the space previously occupied by Broadway traffic. The completed reconstruction includes wider sidewalks; user amenities like benches; rebuilt curbs, streets and sidewalks; modern street and traffic lighting; and a new southbound raised bike lane on 7th Avenue.

Prior to the completion of the above-ground work, the area received new sewers and water mains and utility companies such as Con Edison and Verizon also completed about $25 million of underground utility upgrades. Also hidden from view are electrical lines and other cables and outlets that allow for street performances and events without the need to run wires above ground. Several lengths of old unused streetcar tracks were also removed. With the ongoing and extensive work in Times Square now complete, the end of construction is expected to ease roadway congestion in the surrounding area.

Earlier this year, the City Council enacted a new law governing pedestrian plazas Citywide. Under that law, DOT promulgated new regulations for Times Square, governing new pedestrian flow zones and designated activity zones. Enforced by NYPD, the new zones have helped keep pedestrian traffic flowing and helped curb aggressive commercial behavior.

"The completion of the construction in Times Square, and its transformation into pedestrian plazas with sound regulations, are a true testament and an example of what can be accomplished when city agencies and the community work together towards a goal," said Captain Robert W. O'Hare, Commanding Officer of the NYPD’s Times Square Unit. "The members of the NYPD and the Times Square Unit look forward to continuing to make "The Crossroads of the World" a safe place to visit."

Mayor Bill de Blasio today announced that 56th Street between 6th and 5th avenues will reopen to crosstown traffic, following several weeks of closure. In addition, the New York City Police Department will relocate their mobile command post from the southwest corner of 56th Street to the northwest corner of 56th Street. This will allow for the opening of the south side of 56thStreet to one-lane thru traffic while still allowing the mobile command post to act as a traffic deterrent to keep vehicular threats at bay. These changes – implemented in coordination with the Department of Small Business Services, Department of Transportation, NYPD and Secret Service – will improve congestion and allow for easier access to deliveries for businesses within the security perimeter all while maintaining the safety and security of Trump Tower and the surrounding area. The changes take effect today, Wednesday, December 28.

“The safety of New Yorkers and of the President-Elect are our top concern. The changes we are implementing will maintain that security, while allowing for more movement in the area and addressing concerns raised by surrounding businesses. We will continue to examine and carefully confront the challenges presented by this unprecedented responsibility," said Mayor Bill de Blasio.

"Protecting the President-elect while minimizing the impact to nearby businesses has required constant dialogue from everyone involved," said Police Commissioner James P. O'Neill. "We welcome the re-opening of 56th street to increase pedestrian and vehicular movements in the area while still maintaining the security of the next President of the United States."

"DOT is working closely with the NYPD, local businesses and building owners to continue to mitigate the impact of Midtown security measures on traffic, bus routes and pedestrians on our sidewalks," said DOT Commissioner Polly Trottenberg.

"Our department heard the concerns of small business owners near Trump Tower and we took swift action," said Gregg Bishop, Commissioner of the Department of Small Business Services. "By working with Mayor de Blasio, the NYPD and other colleagues in government, I am pleased that 56th Street will be reopened and that this big security challenge can be met without harming area small businesses."

The Department of Small Business Services recently canvassed businesses around Trump Tower with the NYPD regarding challenges they faced, and SBS Commissioner Gregg Bishop, joined by Council Member Dan Garodnick, met with small business owners within the security perimeter. That outreach helped inform changes that will alleviate some constraints on customer traffic and deliveries.

In addition, a preliminary DOT study of travel times on West 57th Street between 7th and 5th avenues during November showed that eastbound traffic travel times on that street had increased by over 20 percent with the closure of West 56th Street.

The new changes – implemented in coordination with SBS, the NYPD and Secret Service – ensures that the safety and security of Trump Tower and the surrounding area remain intact while improving traffic flow. The City and Secret Service will continue working closely to keep the area secure and maintain steady traffic for surrounding businesses.

Tuesday, December 27, 2016

Iat Hong Arrested On December 25 In Hong Kong On U.S. Insider Trading And Hacking Charges; In Addition To Successful Cyber Intrusions Into Two Law Firms, Defendants Charged With Attempting To Hack Into Total Of Seven Law Firms

Preet Bharara, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of IAT HONG and the unsealing today of a 13-count superseding indictment charging HONG, BO ZHENG, and CHIN HUNG (the “Defendants”). The Defendants are charged with devising and carrying out a scheme to enrich themselves by obtaining and trading on material, nonpublic information (“Inside Information”), exfiltrated from the networks and servers of multiple prominent U.S.-based international law firms with offices in New York, New York (the “Victim Law Firms”), which provided advisory services to companies engaged in corporate mergers and acquisitions (“M&A transactions”). The defendants targeted at least seven law firms as well as other entities in an effort to unlawfully obtain valuable confidential and proprietary information. HONG, a resident of Macau, was arrested on these charges on December 25, 2016, in Hong Kong and is now pending extradition proceedings. HONG was presented for an initial appearance on December 26, 2016, before a Judge in Hong Kong and is expected to have his next court appearance on January 16, 2017.

As alleged, from April 2014 through late 2015, the Defendants successfully obtained Inside Information from at least two of the Victim Law Firms (the “Infiltrated Law Firms”) by causing the networks and servers of these firms to be hacked. Once the Defendants obtained access to the law firms’ networks, the Defendants targeted email accounts of law firm partners who worked on high-profile M&A transactions. After obtaining emails containing Inside Information, the Defendants purchased stock in the target companies of certain transactions, which were expected to, and typically did, increase in value once the transactions were announced. The Defendants purchased shares of at least five publicly-traded companies before public announcements that those companies would be acquired, and sold them after the acquisitions were publicly announced, resulting in profits of over $4 million. In each case, one of the two Infiltrated Law Firms represented either the target or a contemplated or actual acquirer in the transaction.

Manhattan U.S. Attorney Preet Bharara said: “As alleged, the defendants – including Iat Hong, who was arrested in Hong Kong on Christmas Day – targeted several major New York law firms, specifically looking for inside information about pending mergers and acquisitions. They allegedly hacked into two prominent law firms, stole the emails of their M&A partners, and made over $4 million in illegal profits. This case of cyber meets securities fraud should serve as a wake-up call for law firms around the world: you are and will be targets of cyber hacking, because you have information valuable to would-be criminals.”

FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “The subjects charged in this case allegedly stole nonpublic information through unauthorized access to law firms’ computers, and used the information for their own personal gain. The FBI works around the clock to keep these types of alleged securities fraudsters and cyber criminals from trading on stolen information, potentially manipulating the market at the cost of legitimate investors, and harm to corporations.”

According to the allegations contained in the superseding indictment (the “Indictment”)[1]:

The Law Firm-1 Hack and Insider Trading

At all times relevant to the Indictment, Law Firm-1 was a U.S.-based international law firm with offices in New York, New York, which, among other services, provided advisory services to companies engaged in M&A transactions.

The Contemplated Intermune Transaction

In June 2014, Law Firm-1 was retained by a company not named in the Indictment (the “Company”) in connection with a contemplated acquisition of Intermune, a publicly traded U.S.-based drug maker (the “Contemplated Intermune Transaction”). A partner in the M&A group at Law Firm-1 (“Partner-1”) was an attorney working on the Contemplated Intermune Transaction.

Beginning on July 21, 2014, the Defendants began exchanging emails concerning, among other things, particular M&A partners at Law Firm-1. In addition, on or about July 29, 2014, HONG emailed HUNG a list of eleven partners at Law Firm-1, including Partner-1.

Also beginning about July 2014, the Defendants, without authorization, caused one of Law Firm-1’s web servers (the “Law Firm-1 Web Server”) to be accessed by using the unlawfully obtained credentials of a Law Firm-1 employee. The Defendants then caused malware to be installed on the Law Firm-1 Web Server. The access to the Law Firm-1 Web Server allowed unauthorized access to at least one of Law Firm-1’s email servers (the “Law Firm-1 Email Server”), which contained the emails of Law Firm-1 employees, including Partner-1.

Between about August 1 and August 15, 2014, Partner-1 was privy to Inside Information about the Contemplated Intermune Transaction. For example, on more than one occasion between August 7 and August 15, 2014, Partner-1 obtained information, including via email, about details of the proposed transaction, including the price per share the Company was considering offering to acquire Intermune.

Between about August 1 and August 9, 2014, the Defendants caused more than 40 gigabytes of confidential data to be exfiltrated from the Law Firm-1 Email Server over the course of at least eight days.

On August 13, 2014, during the time Law Firm-1 was advising the Company on the Contemplated Intermune Transaction and after the Defendants had obtained access to confidential email data maintained at Law Firm-1, HONG used the Inside Information to purchase 7,500 shares of Intermune stock for certain trading accounts (the “Trading Accounts”). Prior to that date, none of the Trading Accounts had purchased any shares of Intermune. Later that day, HONG purchased an additional 1,000 shares of Intermune stock in the Trading Accounts.

On August 16 and 17, 2014, the Defendants exploited their continued unauthorized access to email data belonging to Law Firm-1 by exfiltrating approximately 10 gigabytes of confidential data from the Law Firm-1 Email Server. Between about August 18 and August 21, 2014, HONG and ZHENG used the Inside Information to purchase additional Intermune shares in the Trading Accounts on at least five occasions, totaling an additional 9,500 shares of Intermune stock.

The Contemplated Intermune Transaction was never consummated. Instead, before the market opened on Monday, August 25, 2014, Intermune announced that it had reached an agreement to be acquired by Roche AG, a German company. On that day, Intermune’s share price increased by approximately $19 per share, or approximately 40 percent from the closing price on Friday, August 22, 2014, the last prior trading day. That same day, August 25, 2014, the Defendants sold the 18,000 shares that they had begun acquiring twelve days earlier for profits of approximately $380,000.

The Intel-Altera Transaction

In January 2015, Law Firm-1 was retained by Intel Corporation (“Intel”), a publicly traded multinational technology company, in connection with a contemplated acquisition of Altera Corporation (“Altera”), a publicly traded integrated circuit manufacturer (the “Intel-Altera Transaction”). As with the Contemplated Intermune Transaction, Partner-1 was an attorney working on the Intel-Altera Transaction.

Between January and about March 27, 2015, Partner-1 was privy to Inside Information about the Intel-Altera Transaction. On several occasions during this time period, Partner-1 obtained confidential information about the contemplated transaction via email. For example, on January 29, 2015, Partner-1 received an email with deal terms, including the proposed price per share to purchase Altera.

Between January 13, 2015, in the same month that Law Firm-1 was retained by Intel to advise on the Intel-Altera Transaction, and about February 10, 2015, the Defendants caused approximately 2.8 gigabytes of confidential data to be exfiltrated from the Law Firm-1 Email Server.

Beginning February 17, 2015, during the time Law Firm-1 was advising Intel and after the Defendants had obtained access to confidential email data maintained at Law Firm-1, the Defendants used the Inside Information to purchase shares of Altera stock in the Trading Accounts. Prior to that date, none of the Trading Accounts had purchased any shares of Altera.

To further effectuate their insider trading scheme, between February 17 and March 27, 2015, one or more of the Defendants used the Inside Information to purchase additional shares of Altera stock in the Trading Accounts on at least 26 occasions, ultimately purchasing more than 210,000 shares.

On March 27, 2015, a financial newspaper published an article reporting on confidential merger discussions between Intel and Altera (the “March 27 Newspaper Article”). Following the publication of the article, on March 27, 2015, Altera’s share price increased $9 per share, or approximately 26 percent, from Altera’s share price on March 27, 2015, just prior to the March 27 Newspaper Article. On April 10 and April 13, 2015, the Defendants sold all of their shares of Altera stock for a profit of approximately $1.4 million.

The Law Firm-2 Hack and Insider Trading

At all times relevant to this Indictment, Law Firm-2 was a U.S.-based international law firm with offices in New York, New York, which, among other services, provided advisory services to companies engaged in M&A transactions.

The Pitney Bowes-Borderfree Transaction

In December 2014, Law Firm-2 was retained by Pitney Bowes Inc., a publicly traded international business services company, in connection with a contemplated acquisition of Borderfree, Inc., a publicly traded e-commerce company headquartered in New York, New York (the “Pitney Bowes-Borderfree Transaction”). A partner in the M&A group at Law Firm-2 (“Partner-2”) was an attorney who worked on the Pitney Bowes-Borderfree Transaction.

Beginning about April 7, 2015, after Law Firm-2 had been retained to advise Pitney Bowes, the Defendants, without authorization, caused one of Law Firm-2’s web servers (the “Law Firm-2 Web Server”), located in New York, New York, to be accessed by using the unlawfully obtained credentials of a Law Firm-2 employee. The Defendants then caused malware to be installed on the Law Firm-2 Web Server. The malware on the Law Firm-2 Web Server allowed unauthorized access to at least one of Law Firm-2’s email servers, also located in New York, New York (the “Law Firm-2 Email Server”), which contained the emails of Law Firm-2 attorneys, including Partner-2.

Between about April 8 and July 31, 2015, the Defendants then caused approximately seven gigabytes of confidential data to be exfiltrated from the Law Firm-2 Email Server over the course of at least six days.

Beginning April 29, 2015, hours after the Defendants had caused data from the Law Firm-2 Email Server to be exfiltrated, HONG and HUNG used the Inside Information to purchase shares of Borderfree stock for the Trading Accounts. Prior to that date, none of the Trading Accounts had purchased any shares of Borderfree stock. To further effectuate their insider trading scheme, between April 29 and May 5, 2015, HONG and HUNG used the Inside Information to purchase additional shares of Borderfree in the Trading Accounts on at least five occasions. In total, HONG and HUNG used the Inside Information to purchase 113,000 shares of Borderfree.

On May 6, 2015, the Pitney Bowes-Borderfree Transaction became public. On that day, Borderfree’s stock price increased by approximately $7 per share, or 105 percent, from the previous day’s closing price. On May 18, 2015, HONG and HUNG sold their Borderfree shares, earning a profit of approximately $841,000.

Additional Insider Trading and Attempted Insider Trading Based on Inside Information Hacked from the Infiltrated Law Firms

In addition to trading on Inside Information in connection with the Contemplated Intermune Transaction, the Intel-Altera Transaction, and the Pitney Bowes-Borderfree Transaction, detailed above, the Defendants carried out their scheme to enrich themselves by obtaining and trading on the basis of Inside Information exfiltrated from the networks and servers of the Infiltrated Law Firms concerning at least 10 additional M&A transactions, including certain M&A transactions that were contemplated but never consummated. Several of these M&A transactions involved Partner-1 or Partner-2. In total, as a result of trading on Inside Information, the Defendants enriched themselves by at least $4 million.

Attempts to Hack Other Victim Law Firms

In addition to obtaining and trading on Inside Information concerning M&A transactions exfiltrated from the networks and servers of the Infiltrated Law Firms, the Defendants repeatedly attempted to cause unauthorized access to the networks and servers of five other Victim Law Firms using means and methods similar to those used to successfully access the Infiltrated Law Firms. For example, between March and September 2015, the Defendants attempted to cause unauthorized access to the networks and servers of these law firms on more than 100,000 occasions.

The Robotics Company Intrusions

At certain relevant times, the Defendants were also involved in a start-up robotics company (the “Robotics Company”), started by ZHENG, the defendant, which was engaged in the business of developing robot controller chips and providing control system solutions. HONG and HUNG were also involved in running the Robotics Company.

Between April 2014 and late 2015, in addition to their efforts to hack the Victim Law Firms’ networks and servers during this period, the Defendants also caused confidential information to be exfiltrated from the networks and servers of two robotics companies (the “Robotics Company Victims”) using substantially similar means and methods of exfiltration as were used to access and attempt to access and exfiltrate information from the Victim Law Firms. Specifically, certain of the same servers that were used to carry out the hacks and attempted hacks of the Victim Law Firms were used to carry out hacks of the Robotics Company Victims. Among other confidential information, the Defendants obtained confidential and proprietary information concerning the technology and design of consumer robotic products, including detailed and confidential proprietary design schematics. Following these exfiltrations from the Robotics Company Victims, the Defendants exchanged emails containing certain of the confidential information they had caused to be exfiltrated from the Robotics Company Victims, including the proprietary schematics.

Defendants and Charges

HONG, 26, and HUNG, 50, are residents of Macau. ZHENG, 30, is a resident of Changsha, China. HONG was arrested on December 25, 2016, in Hong Kong and is now pending extradition proceedings. The defendants are charged with the following offenses, which carry the maximum prison terms listed below. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.

Count

Defendants

Charge

Maximum Prison Term

One

HONG, ZHENG, HUNG

Conspiracy to Commit Securities Fraud: Insider Trading

5 years

Two

HONG

Securities Fraud: Insider Trading – Intermune

20 years

Three

ZHENG

Securities Fraud: Insider Trading – Intermune

20 years

Four

HONG

Securities Fraud: Insider Trading – Altera

20 years

Five

HUNG

Securities Fraud: Insider Trading – Altera

20 years

Six

ZHENG

Securities Fraud: Insider Trading - Altera

20 years

Seven

HONG

Securities Fraud: Insider Trading - Borderfree

20 years

Eight

HUNG

Securities Fraud: Insider Trading - Borderfree

20 years

Nine

HONG, ZHENG, HUNG

Conspiracy to Commit Wire Fraud

20 years

Ten

HONG, ZHENG, HUNG

Wire Fraud

20 years

Eleven

HONG, ZHENG, HUNG

Conspiracy to Commit Computer Intrusion

5 years

Twelve

HONG, ZHENG, HUNG

Computer Intrusion – Unlawful Access – Law Firm-2

10 years

Thirteen

HONG, ZHENG, HUNG

Computer Intrusion – Intentional Damage – Law Firm-2

10 years

Mr. Bharara praised the investigative work of the FBI, and thanked the Securities and Exchange Commission for their assistance. Mr. Bharara also thanked the Office of International Affairs and Hong Kong law enforcement for their assistance in the arrest and apprehension of HONG. He added that the investigation is continuing.

The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force and the Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Andrea M. Griswold, Daniel B. Tehrani, and Kristy J. Greenberg are in charge of the prosecution.

The allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.